Aegis Media's outgoing chief executive officer David Liu confirmed the deal with Naga, which has a 40 per cent stake in the local OMD office, saying it would pave the way for Vizeum's January 1 launch in Malaysia alongside Carat.
Helmed by the influential Lee, Naga is expected to present its clients with a choice of media partners in the next month, according to sources.
Helmed by the influential Lee, Naga is expected to present its clients with a choice of media partners in the next month, according to sources.
Both Naga and OMD have declined to elaborate on the amount of business they share. Sources point to telco Digi, Nikon, Malaysia's second-largest auto firm Perodua, and Government health campaigns as shared.
However, OMD retains media for Singapore bank UOB, which recently parted ways with Naga following a shootout for its Southeast Asia business. OMD also has a roster of more than 20 independently-acquired clients such as McDonald's, Dumex, Visa, Allianz, Drypers and the new Courts Mammoth brief, which observers believe will cushion it should Naga shift business to Vizeum.
It is believed that a significant scaling back of Naga's grip on the lucrative Tourism Malaysia brief -- which is now split among 11 agencies, including Carat, following a review last year -- may have precipitated Naga's decision to partner with Aegis.
"Carat has a lot of the Tourism Malaysia business. (Lee) has always wanted to control his own media business instead of it going to another silo," said an industry observer." The development is being viewed in regional circles as a clash of operating philosophy between a local and an international network in an era of unbundled media.
Additional reporting by Amy White
